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Fast Forward

August 2013

Our Beliefs
Respect
Collaboration
Excellence
Integrity
Community

The BorgWarner Strategic Difference

 Technology Leadership
 Customer and Geographic Diversity
 Financial Strength and Discipline
2

A Portfolio of Industry Leading Powertrain Technology
Engine

68% / SALES

Drivetrain

32% / SALES

Turbo Systems

Morse TEC

Transmission Systems

TorqTransfer Systems

• Wastegate

• Engine Valve Timing Systems

• AWD Couplings

• Variable Turbine Geometry
(VTG)
• Regulated 2-stage
(R2S™)

• DualTronic® Systems for Dual
Clutch Transmissions
• Transmission Control Modules
and Solenoids
• High Pressure Transmission
Control and Actuation Systems
• One-way Clutches

-Timing Chain
• Variable Cam Timing
- Oil Pressure Actuated
-Torsional Assist
- Cam Torque Actuated
• HY-VO® Transmission Chain
• Friction Plates
- Transmission/Transfer case
chain

Thermal Systems
• Thermal Management
Components and Systems
• Visctronic® Systems
• Fans/Fan Drives

Emissions Systems
• Exhaust Gas Recirculation
(EGR) Valves
• EGR Coolers & EGR tubes
• Integrated EGR Modules
• Secondary Air Systems
• Actuators

Morse TEC

BERU Systems
• Glow Plugs
• Instant Start System
• Pressure Sensor Glow Plugs
• Gasoline Ignition Technology
• Sensor Technology
• PTC Cabin Heaters

Thermal
Systems

• Transfer Cases
• eGearDrive® Electric
Drive Transmissions
• eAWD Torque Vectoring
• AWD Electronic Controls
and Systems Integration

Transmission
Systems
TorqTransfer
Systems

Turbo
Systems
BERU
Systems
Emissions
Systems
3

Miles per Gallon Equivalent (CAFE/Local Test Cycle)

Fuel Economy Standards are Tightening
65.0

E.U. Proposed

60.0
Japan Proposed

55.0
China Proposed

50.0

Japan Enacted
U.S. Proposed

45.0
E.U. Enacted

40.0

China Enacted

35.0
30.0
U.S. Enacted

25.0
20.0
2005

2010

2015

2020

2025

Year
4
Source: International Council on Clean Transportation, August 2012

Consumers Are Focused on Fuel Economy
Survey of U.S. Consumers: What is the leading consideration
when shopping for a car?
37%

17%

Fuel Economy

Quality

16%

Safety

14%

Value

5
*Source: Consumer Reports, 2012

The Road to Better Fuel Economy
Transmissions

Turbochargers

Fuel Economy

up to 15%*

up to 30%*

EGR Systems

VCT

up to 5%*

up to 5%*
6
* Improvement in fuel economy

Fuel Economy Drives Growth for BorgWarner
LV Transmissions

LV Turbochargers

103.0

103.0

82.4

82.4

Manual Transmissions
9.4
4.1
32.6

29.6
2.2

7.4

2.7

2013E

Non-Turbocharged

DCT (18%)*
Step ATs (2%)*
CVT (8%)*
AMTs and Other (4%)*

17.7

(14%)* Gasoline
(5%)*Diesel

11.1
2018E

9.2
17.0

21.7

2013E

2018E

LV VCT

LV EGR Systems

103.0

103.0
Fuel Economy
82.4

82.4

Non-EGR

Non-VCT
(9%)* VCT Systems

7.3
2.8
16.5

21.3

2013E

2018E

Gasoline (21%)*
Diesel (5%)*

63.8
42.2

2013E

2018E

Global light vehicle industry volumes; units in millions (January 2013)
*CAGRs are shown in parentheses

7

Improved Emissions Drives Growth for BorgWarner
CV Turbochargers
9.0
7.7

Non-Turbocharged
Turbocharged (6%)*

CV EGR Systems
9.0

6.6
5.0

7.7

Non-EGR
2013E

2018E

CV Thermal Systems
4.7

9.0
7.7

Improved Emissions

EGR (20%)*

1.9
2013E

2018E

NonElectronicallyControlled
2.1

0.7
2013E

ElectronicallyControlled (23%)*

2018E

8
Global commercial vehicle industry volumes (excludes aftermarket); units in millions (January 2013)
*CAGRs are shown in parentheses

Attractive Business Model, Difficult to Replicate
New Entrant

New Entrant

New Entrant

New Entrant
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